Company and Industry

Analysis
(Telecommunication)

Submitted by:
Shivam Upadhyay: 18609032
Priyanka Shahi: 18609033
Vipul : 18609067
 Company analysis

T-MOBILE US, INC.

BUSINESS: OVERVIEW AND STRATEGY

We provide wireless services to 79.7 million postpaid, prepaid and wholesale customers and
generate revenue by providing affordable wireless communication services to these
customers, as well as a wide selection of wireless devices and accessories. Our most
significant expenses relate to acquiring and retaining high-quality customers, providing a full
range of devices, compensating employees, and operating and expanding our network.
“Un-carrier Strategy”
We are the Un-carrier. Through our Un-carrier strategy, we’ve disrupted the wireless communication
services industry by listening to our customers and providing them with added value and an
exceptional experience, including implementing signature initiatives that changed the wireless
industry forever. We ended annual service contracts, overages, unpredictable international roaming
fees, data buckets and more. Customer response to our Un-carrier strategy has allowed us to grow
into the third largest wireless provider in the United States. We will continue our relentless focus on
customers and are determined to bring the Un-carrier to every potential customers in the United
States.

Our relentless focus on customer experience through increased investment in networks expansion,
customer care, distribution expansion, and digital initiative has strengthened our customer growth
and increased customer retention and satisfaction, including the growing success of new customer
segments and rate plans such as T-Mobile ONE 55+, T-Mobile ONE military, T-Mobile for Business
and T-Mobile Essentials as well as continued growth in existing and Greenfield markets. We continue
to invest and innovate in these areas to deliver our customers the best value in the industry.
Everything we do is powered by our nationwide 4G Long-Term Evolution (“LTE”) network, and we
are rapidly preparing for the next generation of 5G services. Going forward, it is this network that
will allow us to deliver innovative new products and services with the same customer and focused
and industry disrupting mentality that has redefined wireless service in the United States.

CUSTOMERS:

We provide wireless communication service to three primary categories of customers.

 Branded postpaid customers generally include customers who are qualified to pay after
receiving wireless communication services utilizing phones, DIGITS or connected devices
which includes tablets, wearables and SyncUp DRIVETM.
 Branded prepaid customers generally include customers who pay for wireless
communication services in advance. Our branded prepaid customers include customers of T-
Mobile; and
  Wholesale customers include Machine-to-Machine (“M2M”) and Mobile Virtual Network
Operator (“MVNO”) customers that operate on our network but are managed by wholesale
partners.

We generate the majority of our service revenues by providing wireless communication services to
branded postpaid and branded prepaid customers. Our ability to acquire and retain branded
postpaid and prepaid customers is important to our business in the generation of service revenues
and other revenues. In 2018, our service revenues generated by providing wireless communication
services by customer’s category were:
 65% Branded postpaid customers;
 30% Branded prepaid customers; and
 5% wholesale customers and Roaming and other services.

Services and Products

We provide wireless communication services through a variety of service plan options. We also offer
a wide selection of wireless devices, including smartphones, tablets and other mobile
communication devices, which are manufactured by various suppliers.
Our primary service plan offering, which allows customers to subscribe for wireless communication
services separately from the purchase of a device is our T-Mobile ONE plan (“T-Mobile ONE”), which
include:
 Unlimited talk, unlimited text and unlimited high speed 4G LTE data on their device, where
monthly wireless service fees and sales taxes are included in the advertised monthly
recurring charge;
 Video that typically streams at DVD (480p) quality and tethering is at maximum 3G speeds.
 Customers are provided free to choose plans as per their budgets, they can also select family
plan for all members of their family.
 Along with additional offers are provided to customers as benefits they can claim which
consists, Netflix subscription, additional high speed internet data, and roaming free access to
more than 210+ countries and destinations.

Management & Board of Directors:

Management
1. JOHN J. LEGERE (CHIEF EXECUTIVE OFFICER).
2. MIKE SIEVERT (PRESIDENT AND CHIEF OPERATING OFFICER).
3. DAVID R. CAREY (EXECUTIVE VICE PRESIDENT, CORPORATE SERVICE).
4. J. BRAXTON CARTER (EXECUTIVE VICE-PRESIDENT, SPECIAL PROJECT).
5. PETER A. EWENS (EXECUTIVE VICE PRESIDENT, CORPORATE STRATEGY).
6. SUNIT PATEL (EXECUTIVE VICE PRESIDENT MERGER AND INTEGRATION LEAD).

Board of Directors
1. TITMOTHEUS HOTTGES (CHAIRMAN OF THE BOARD).
2. JOHN J. LEGERE.
 3. SRIKANT T. MADHAV DATAR.
4. SRINI GOPALAN.
5. LAWRENCE H. GUFFEY.
Directors, Executive Officers and Corporate Governance:
We maintain a code of ethics applicable to our Chief Executive Office, Chief Financial Officer,
Treasurer, and controller, which is a “Code of Ethics for Senior Financial Officers” as defined by
applicable rules of the SEC. This code is publicly available on our website at investor t-mobile.com. If
we make any amendments to this code other than technical, administrative or other non-
substantive amendments, or grant any waivers, including implicit waivers, from a provision of this
code we will disclose the nature of the amendment or waiver, its effective date and to whom it
applies on our website at investors t-mobile.com or in a current Report on Form 8-K filed with the
SEC.

Corporate Social Responsibility:

 Empowering first steps towards careers by partnering with boys and girls clubs of America
and after school all-stars to expose more than 4 million youth to careers in technology. The
main objective of this program is to encourage youth towards their next step in career
success.
 Serving our veterans and their families by going beyond exclusive discounts to provide
career assistance and community support for service members, veterans, and their families.
We’re on a mission to hire 10,000 veterans and military spouses by 2023. And we’re getting
closer every day.
 Change starts with an idea, as we’re partnering with Ashoka to give young people a platform
to make positive, long lasting changes in their communities.
 Easy ways to donate, we’ve enables customers to give over a million dollars toward various
relief efforts, and we’re just getting started.

SWOT ANALYSIS:
Strengths
 Largest mobile service provider by subscribers with strong customer base of more than 300
million customers in various parts of world.
 Geographically diversified business working over 210+ countries.
 Developed and advanced network. T-Mobile is now looking into launching 5G which is more
advanced and fastest network as compared to 4G LTE.
 Strong brand recognition – Aggressive strategy, creative advertising, decent customer
service and employee-friendly policies have helped in making the brand best in the world.
Weaknesses
 Economic conditions
 Cut throat competition everywhere
 Absence from the profitable Asia & the pacific, European, Africa & Middle East markets.

Opportunities

 Opening up of new markets because of government agreement.

  T-Mobile has made it benchmark among the other competitors present in the market which
is making T-Mobile’s more competitive in nature.
 The new technology provides an opportunity to T-Mobile US Inc. to practice differentiated
pricing strategy in the new market.
 Lower inflation rate – The low inflation rate bring more stability in the market, enable credit
at lower interest rate to the customers of T-Mobile US, Inc.
 Stable free cash flow provides opportunities to invest in adjacent product segments as well
as in new technologies and also in new product segments.

Threats

 New environment regulations under Paris agreement (2016) could be a threat to certain
existing product categories.
 Increasing trend toward isolationism in the American economy can lead to similar reaction
from other government thus negatively impacting the international sales.
 No regular supply of innovative products.
 Currency fluctuations is another threat as the company is operating in more than 210+
countries.
 Liabilities laws in different countries are different and T-Mobile US, Inc. may be exposed to
various liability claims given change in policies in those markets.
 Shortage of skilled workforce
 Changing consumer buying behavior from online channel.
 VERIZON COMMUNICATION INC.

Business:

Verizon Communication Inc. (Verizon or the company) is a holding company that, acting through its
subsidiaries, is one of the world’s leading providers of communications, information and
entertainment products and services to consumers, businesses and governmental agencies. With a
presence around the world, we offer voice, data and video services and solution on our networks
that are designed to meet customers’ demand for mobility, reliable network connectivity, security
and control.

Two reportable segments, Wireless and Wireline, which are operated and managed as strategic
business units and organize by products and services, and customer groups, respectively.

 Wireless: Include wireless voice and data services and equipment sales, which are provided
to consumer, business and government customers across the United States (U.S.)
 Wireline: Includes video and data services, corporate networking solutions, security and
managed network services and local and long distance voice services.

The Company offers IT infrastructure services that include colocation and managed hosting in data
centers around the globe. Its cloud services include computing, storage, backup, recovery and
application platforms its customers rely on to run their business operations. Business
communications services include IP communications services, which simplify network management
and drive operational efficiencies by enabling the convergence of voice and data traffic on the same
access connection; Internet access, which provides enterprise customers with high-bandwidth
access to its global network; unified communications and collaboration capabilities, which enable
customers to communicate in real-time through VoIP and IP conferencing, and emergency
communication services, which allow customers to respond to emergencies while maintaining
business continuity. It offers a suite of data security services to help companies secure their
networks, data, applications and infrastructure from security threats. Its core services include core
voice and data services, which consist of a portfolio of global solutions utilizing traditional
telecommunications technology, such as conferencing and contact center solutions, and private line
and data access networks. Core services also include providing customer premise equipment, and
installation, maintenance and site services.

Products: Fixed-line and mobile telephony, broadband and fixed-line internet services, digital
television and network services, and global Internet Protocol backbone network.

Board of Directors:
The Board of Directors is charged with maintaining the highest standards of corporate governance
because it believes that an effective board will positively influence shareholder value and enhance
Verizon's reputation. All of our Directors stand for election each year. Our Board as a whole reflects
a wide range of viewpoints, backgrounds and expertise because we believe that diversity is a core
attribute of a well-functioning board. A summary of the board's role and guiding principles can be
found in our corporate governance guidelines.

Persons include:
 1. Hans Vestberg (Chairman and Chief Executive Officer of Verizon Communication Inc.)
2. Shellye L.Archambeau (Former Chief Executive Officer of MetricStream, Inc.)
3. Mark T.Bertolini (Former Chairman and Chief Executive Officer of Aetna Inc.)
4. Vittorio Colao (Former Chief Executive of Vodafone Group Plc)
5. Melanie L. Healey (Former Group President of the Procter & Gamble Company)
6. Clarence Otis, Jr. (lead Director) – Former chairman and Chief Executive Officer of Darden
Restaurants, Inc.

Corporate Responsibilities Highlight:

At Verizon, the purpose is to deliver the promise of the digital world by enabling people, businesses
and society to innovate and drive positive change. We will create business value by earning
customers’ and employees’ trust, minimizing our environmental impact, and maximizing customer
growth while creating social benefit through our products and services.

Education Goal:
By 2021, Verizon will help provide three million students with the skills required to put them on the
path to success in an increasingly tech-dependent job market.

Progress
In 2018, more than 500,000 students were impacted by our Verizon Innovative Learning initiative.
 Nearly 1.7 million students have been impacted by our education programs since 2012.
 Key metrics:
• 79 percent of teachers said the Verizon Innovative Learning program helped them
improve the way they teach.
• 76 percent of teachers said that participating in Verizon Innovative Learning
enhanced student engagement.

Sustainability Goals:
 By 2022, Verizon’s networks and connected solutions will save more than double the
amount of global emissions that our operations create.
 By 2025, we will reduce our carbon intensity (a measure of the overall carbon we emit
divided by the terabytes of data carried by our networks) by 50 percent over the 2016
baseline.
 By 2030, we will plant two million trees in communities around the world

Progress
In 2018, Verizon’s networks and connected solutions enabled emissions savings equal to 1.68 times
our own operational emissions.
 In 2017, we reduced our carbon intensity 28 percent from the 2016 baseline. Our progress
for 2018 will be reported on our Corporate Responsibility website later in 2019.
 In late 2018, we set a new goal to source renewable energy equivalent to 50 percent of our
total electricity usage by 2025.
 We have planted 724,550 trees since 2009.

SWOT Analysis:

Strengths
 1. Verizon has a strong reputation of network coverage with 100 million plus wireless
subscribers.
2. 4G Network capabilities offered by Verizon.
3. Good brand Recognition & global goodwill of the company.
4. It is one of the largest wireless carrier in US.
5. Verizon provides services like Fixed-line and mobile telephony, broadband and fixed-line
internet services, digital television and network services.
6. Over 170,000 employees are present in the organization.
7. Verizon with its services reaches out to more than 150 countries.
8. Strong marketing exercises and sponsorship of events have boosted the brands presence.

Weaknesses

Here are the weaknesses in the Verizon Communications SWOT Analysis:

1. Increase in competition means limited market share growth from Verizon.

2. Presence limited to primarily Americas and not a major player like a few other established
telecom operators.
3. Premium prices – In services, your competitors are known to catch up soon and so is the
case in US also. AT&T and T-Mobile are fast catching up with Verizon in terms of price. So
the premium prices (and hence margins) are going to be for a limited period only.
4. Regional Player - Where most telecom operators are trying to expand as much as they can,
Verizon can be called only a national player and has not expanded anywhere outside USA.

Opportunities

1. International Expansion - Besides whatever local market it has captured, Verizon has to think
of Expanding globally because that’s where the money lies. The faster it expands, the more
difficult it will be to defeat it.
2. Data usage – If there is 4G now, there will be 5G later. For a network which is the market
leader on speed, there is no worry because data usage is only going to increase in the
coming years with the amount of videos, 360 degree photos and 3D videos being made
everyday.
3. Service improvement – One of the complains received regularly for Verizon is
customer service.

Threats

1. AT&T and T-Mobile – Both of these competitors are strongly taking on Verizon and both of
them are solid brands within themselves. T-Mobile even made fun of several ads of Verizon
and regularly targets Verizon in its campaigns.
2. Government regulations – For telecom companies, government regulations are always an
issue which can arise at any time for any reason. Hence this is a constant threat of Verizon.
3. Expenditure for expansion – If Verizon plans on expansion to foreign countries now, then it
will face competition from already existing players which will make its bottom line thin. And
this can be a dangerous position for any company.
 Industry Analysis
EXECUTIVE SUMMARY

Second-largest subscriber base:

 India has the second largest telecom network in the world.

 Total subscriber base in the country stood at 1,205.40million at the end of February2019

Rising penetration rate:

 Telecom penetration, also known as tele-density, has grown rapidly over the course of the past few
years.
 Tele-density grew from18.23 percent in FY07to 91.86 percent in FY19.

Second-highest number of internet users

 India has the second highest number of internet subscribers globally.

 Total number of internet subscribers stood at 604.21 million, at the end of December 2018

Affordability and lower rates

 Availability of affordable smartphones and lower rates of data are expected to drive growth in the
Indian telecom industry.
 Advantage India

Robust India:
 India ranks second in terms of number of telecommunication subscriptions, internet subscribers and
app downloads* globally.

 Moreover, India is also one of the largest data consumers globally. Total mobile data usage in the
country grew 109 per cent year-on-year to 4,867 PB per month in December 2018.^

Attractive opportunities

 The government of India has introduced Digital India programme under which all the sectors such as
healthcare, retail, etc. will be connected through internet.

 Also, with 70 per cent of the population staying in rural areas and a rapidly increasing rural telecom
penetration, the rural market would be a key growth driver in the coming years.

Increased ratings
Telecommunication ratings in the country are expected to start rising within the next two quarters (Q3 and Q4
2018-19), providing higher pricing power to incumbent players

Policy support
The government has been proactive in its efforts to transform India into a global telecommunication hub.

 The Government of India unveiled the National Digital Communications Policy, 2018 in September
2018. The policy aims to attract US$ 100 billion worth of investments and generate 4 million jobs in
the sector by 2022.

 As of January 2019, expenditure on telecom infrastructure and services by Government of India grew
six fold to Rs60,000 crore (US$ 8.31 billion) between 2014-19.

MARKET OVERVIEW
THE TELECOM MARKET SPLIT INTO THREE SEGMENTS:

Mobile (wireless):

Comprises establishments operating and maintaining switching and transmission facilities to provide direct
communications via airwaves.
Fixed-line (wireline)
Consists of companies that operate and maintain switching and transmission facilities to provide direct
communications through landlines, microwave or a combination of landlines and satellite link-ups

Internet services:

Includes Internet Service Providers (ISPs) that offer broadband internet connections through consumer and
corporate channels.

India is currently the second largest telecommunication market and has the second highest number of internet
users in the world.

India’s telephone subscriber base expanded at a CAGR of 17.44 percent, reaching 1,206.22 million during
FY07–18.

Tele-density (define as the number of telephone connections for every 100 individuals) in India, increased
from18.3 percent in FY 07to 92.84 percent in FY18.

Total telephone subscriber base and tele-density reached1 ,205.40 million and 91.86 percent, respectively, at
the end of February2019

WIRELESS AND RURAL SEGMENTS GAINING SHARE

The share of the wireless segment in India’s telecommunications market has increased steadily.

As of February2019, the wireless segment comprises 98.20 percent of telephone subscriptions, compared to
95.90percent in FY11.

Similarly, share of rural subscribers in total telephone subscribers has surged as telecommunications
penetration has increased.

As of February 2019, rural subscribers form 43.98 percent of total telephone subscribers, compared to 33.35
percent in FY11

EMERGENCE OF TOWER INDUSTRY

A surge in the subscriber base has necessitated network expansion covering a wider area, thereby creating a
need for significant investment in telecom infrastructure

To curb costs and focus on core operations, telecom companies have been segregating their tower assets into
separate companies. For example: Reliance Communications has decided to finalise a deal to sell its stake in
Reliance Infratel.The value of the deal is around US$3.68 billion

Creating separate tower companies has helped telecom companies lower operating cost and improve capital
structure; this has also provided an additional revenue stream

Inspired by the success seen by Indian players in towers business, most of the operators around the world are
replicating the model
 RECENT TRENDS AND STRATEGIES
Green Telecom:
The green telecom concept is aimed at reducing carbon footprint of the telecom industry through lower
energy consumption.
The Government of India’s National Digital Communication Policy, released in September2018, envisages
strengthening of mobile tower industry by promoting and incentivising deployment of solar and green energy
for tele com towers.
The Government of India proposed a joint task force between Ministry of New and Renewable Energy
(MNRE) and Department of Telecommunication to promote green technology in the sector.

Expansion to Rural Markets

There are over 62,443 uncovered villages in India; these would be provided with village telephone facility with
subsidy support from the government’s Universal Service Obligation Fund (thereby increasing rural tele-
density)

As of February 2019, the rural subscriber base accounted for 43.98percent of the total subscriber base,
thereby fuelling growth across the sector.

Consolidation:

Vodafone India and Idea have merged into Vodafone idea. Vodafone Idea is unifying assets and aims to
complete network integration by June2020.
Airtel’s acquisition of Tata Teleservices’ mobile business was given approval by Competition Commission of
India (CCI) in November 2017.As of December 2018, the deal was cleared by the National Company Law
Tribunal (NCLT).

Rising investments:

In 2017, Vodafone disclosed its plans to invest US$1,310 million to upgrade and expand Vodafone India
network coverage and US$655 million to upgrade its technology centre

The new National Digital Communications Policy 2018 has envisaged attracting investments worth US$100
billion in the tele communications sector by 2022.
Mobile banking:

The number of mobile wallet transaction increased 5 percent month-on-month to 325.28 million in July 2018.

In March 2017, the government set a target of achieving 25 billion digital transactions for banks with the help
of PoS machines, transactions enabled and merchants, which have been added in firms

As of April 2019, more than 480 banks have been permitted to provide mobile banking services in India.

STRATEGIES ADOPTED
Players are using innovative marketing strategies to succeed in this sector .For example,
•In August 2015, Idea Cellular launched new campaign “Get idea and dance”
•Airtel launched new ad campaign “Airtel my Plan Family”

Differentiation
Players differentiate themselves by providing different services to customers.

Bharti Airtel has already partnered with Amazon Prime and Hotstar and is expected to tie up with Netflix to
offer free subscription to Netflix’s content on its mobile customers.

Reduced number of plans

Players have reduced the number of plans on offer and now offer a limited number of simple tariff plans along
with particular marquee plans.

This has simplified choosing plans for customers and customers can choose the best deals for themselves.

Pricing strategy
Players price their products very carefully due to the price sensitive nature of customers and high competition
in the sector.

Foreign investment

FDI inflows in to the telecom sector during April 2000–December 2018 totalled to US$32.45 billion.

During this period, FDI into the sector accounted for a share of nearly 7.93 percent of total FDI
inflows into the country.
5 porter’s strategy
Threat of New Entrants.
It comes as no surprise that in the capital-intensive telecom industry the biggest barrier to entry is access to
finance. To cover high fixed costs, serious contenders typically require a lot of cash. When capital markets are
generous, the threat of competitive entrants escalates. When financing opportunities are less readily available,
the pace of entry slows. Meanwhile, ownership of a telecom license can represent a huge barrier to entry

Power of Suppliers.
At first glance, it might look like telecom equipment suppliers have considerable bargaining power over
telecom operators. Indeed, without high-tech broadband switching equipment, fibre -optic cables, mobile
handsets and billing software, telecom operators would not be able to do the job of transmitting voice and
data from place to place. But there are actually a number of large equipment makers around. There are
enough vendors, arguably, to dilute bargaining power. The limited pool of talented managers and engineers,
especially those well versed in the latest technologies, places companies in a weak position in terms of hiring
and salaries.

Power of Buyers.
With increased choice of telecom products and services, the bargaining power of buyers is rising.
Telephone and data services do not vary much, regardless of which companies are selling them. For the most
part, basic services are treated as a commodity. This translates into customers seeking low prices from
companies that offer reliable service. At the same time, buyer power can vary somewhat
between market segments. While switching costs are relatively low for residential telecom customers, they
can get higher for larger business customers, especially those that rely more on customized products and
services.

Availability of Substitutes.
Products and services from non-traditional telecom industries pose serious substitution threats. Cable TV and
satellite operators now compete for buyers. The cable guys, with their own direct lines into homes,
offer broadband internet services, and satellite links can substitute for high-
speed business networking needs. Railways and energy utility companies are layingmiles of high-capacity
telecom network alongside their own track and pipe line assets. Just as worrying for telecom operators is the
internet: it is becoming a viable vehicle for cut-rate voice calls. Delivered by ISPs - not telecom operators -
"internet telephony" could take a big bite out of telecom companies' core voice revenues.

Competitive Rivalry.
Competition is "cut throat". The wave of industry deregulation together with the receptive capital markets of
the late 1990s paved the way for a rush of new entrants. New technology is prompting a raft of substitute
services. Nearly everybody already pays for phone services, so all competitors now must lure customers with
lower prices and more exciting services. This tends to drive industry profitability down. In addition to low
profits , the telecom industry suffers from high exit barriers, mainly due to its specialized equipment.
Networks and billing systems cannot really be used for much else, and their swift obsolescence make liquidation
pretty difficult

Factors analysis Effect on telecom

Intensity of competitive  Concentrated High
rivalary -firms rivalary market share and
structure
 Global presence and
marketing network
 Future prospects
Bargaining Power of  Cost of products high
customer relative to total cost
 Product
differentiation
 Bargaining power of Competition between Low
suppliers suppliers
Threats of substitute  Buyers propensity to moderate
products or services substitute
 Relative price
performance of
substitute
Threat of new entrants Threat of entry low
 Govt and legal
barriers

Key market players

Market share of key players

 PESTELANALYSIS

Political
Telecom sector sets a strong set of policies to withstand the political system of
the country and it keeps on reforming its policies as per the needs.
Economic
Tele-communication sector has different players in it. Companies have a stiff competition in
terms of price making with its rivals like Idea, Vodafone, Reliance, Airtel and so on.
Social
Telecom sector won millions of customers by providing strong network back up,better
service and low call charges. There is still a scope to tap rural market through extended
infrastructure network.
Technological
Telecommunication sector is coming with new technology that too at an affordable price.
Environmental
Telecom sector announced its Endeavour to build a “Green” environment friendly mobile
network and reduce its Carbon Foot print .
Legal
Telecom sector has many company laws which covers almost every aspect of
the organisation. Companies operate on separate laws for their employees’ health, safety
and wages .

Regulatory Framework provides level playing field for all operators

The Department of telecommunications (Government of India) is the main governing body for the
industry. Telephone Regulatory Authority of India (TRAI) assists the Government of India (GoI) to
take timely decisions and introduce new technologies in the country.
 Indian Telecom Industry Framework
Indian Government Bodies

They formulate various policies and pass laws to regulate the telecom industry in India.

Wireless Planning and Coordination (WPC)

Handles spectrum allocation and management

Department of Telecommunications
DoT – Licensee and frequency management for telecom

Telecom Commission
Exclusive policy making body of DoT

Group on Telecom and IT (GoT-IT)

Handles ad hoc issues of the telecom industry

Independent Bodies
They undertake various research activities and monitor the quality of service provided in the
Indian telecom industry. They also provide various recommendations to improve the status
of telecom operations in India.

Telecom Regulatory Authority of India (TRAI)

Independent regulatory body

Telecom Disputes Settlement and Appellate Tribunal (TDSAT)

Telecom disputes settlement body

Important regulations and their impact on the Indian telecom

industry
Unified Access Service License Regime (UASL)
Unified licensing marked the end of the license regime in the Indian telecom industry. It
helped in aligning convergent technologies and services. The establishment of the Unified
Access Licensing Regime (2003) eliminated the need for different licenses for different
services. Players are now allowed to offer both mobile and fixed-line services under a single
license after paying an additional entry fee. This does not take into account national and
international long-distance services and Internet access services.
Access Deficit Charges (ADC)
ADC makes it mandatory for a service provider at the caller’s end to share a percent of the
revenue earned with the service provider at the receiver’s end in long-distance telephony.
This subsidises the infrastructure costs of the service provider enabling access at receiver’s
end, especially because rental for fixed-line services is low. Revision in the ADC regime is
expected to be followed by further tariff reduction in telecom services.
Universal Service Obligation (USO)
The USO policy was laid along with NTP ’99 to widen the reach of telephony services in rural
India. All telecom operators are bound to contribute 5 percent of their revenues to this
fund. This system was put in place to bridge the wide gap between urban and rural
teledensity, bringing it down from the current 31 percent. Initially, only basic service
providers were under the purview of USO. Later, its scope was expanded to include mobile
services also. Although it increases the cost burden for the telecom companies, USO helps in
building the telecommunication infrastructure in the rural areas.